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Reds director of football Steve Simms said: "Luke has pace to burn. He is a try scorer and there is an awful lot of quality there.
"He has outstanding speed and we are hoping that with the other Luke (Robinson), we will have one of the best half-back partnerships in next year's competition and it will enable us to kick on even further than we have this year."
Assistant coach James Lowes has signed a two-year contract extension to keep him at The Willows until the end of the 2008 season.
Lowes has recently been linked with several high-profile head coach positions and Simms was understandably delighted to secure his services for the next two seasons.
"Jimmy told us he never wanted to leave. He told me just now that he sees a very bright future here at Salford, especially with the new stadium on the horizon and he is desperate to be part of that success.
"He is a great coach and we want to surround our players with men of his calibre."